FACT BRIEFDoes universal pre-K provide a benefit to the economy?
Yes.
Studies suggest universal pre-K programs allow more parents, especially mothers, to enter the workforce and work longer hours, which leads to increased earnings.
The White House Council of Economic Advisers concluded employment rates among mothers with children younger than 6 increased by 3.2 percent more after universal pre-K was implemented compared to areas without the programs. Overall private sector employment rose by 1.26 percent more in universal pre-K areas than non-universal pre-K areas, suggesting “more overall economic activity.”
Researchers also found business applications increased 1.1 percent faster in universal pre-K areas compared with areas without, and business establishment rates grew 0.5 percent faster in areas with universal pre-K.
The National Bureau of Economic Researchers found similar results after studying a universal pre-K program in New Haven, Connecticut. Enrolling a child in preschool raised a parent’s earnings by 21.7 percent, or about $5,461 per year.
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Sources
- The National Bureau of Economic Researchers Parents’ Earnings and the Returns to Universal Pre-Kindergarten
- White House Council of Economic Advisers Child Care is Infrastructure: Evidence from Universal Pre-K
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